PRIVATE BACKLASH---empirics prove companies resist.

The two major domestic laws in the US legal system - "Special Section 301" and "337 Survey" perform their duties for seeking comprehensive protection of intellectual property rights. The former mainly targets the intellectual property system of other countries and mandates other countries' effectively product protection of the United States; The latter is used between the United States and other countries' trade, the United States will investigate and sanction foreign companies as well as the related products which constitute infringement, and exclude infringing products and related enterprises from the national market. It targets the enterprises of other countries and their products rather than the government of other countries. The combination of these two major domestic laws allows US intellectual property to be well protected while maintaining its competitiveness for a long time. Due to the wide applicability of the “Special Section 301”, the simplicity of the procedure, the rigorous relief measures and the limited right of the defendant to counterclaim, the number of “307 Survey” initiated by the United States in recent years remains high including more than one third of the cases targeting Chinese products.

Since the 1980s, the “337 Survey” has become an important tool for US companies to protect the intellectual property of their companies. The development of the domestic legal system of intellectual property in the United States has been perfected and has become a leader in intellectual property legislation in various countries of the world. On this basis, the United States has increased the investigation of companies that infringe on its intellectual property rights. This fundamentally strengthens the function of intellectual property protection in the United States. US government curbs foreign trade exports to the Unites States in order to adapt to the needs of the US new trade protectionism economic policy and foreign trade policy.

2.2.1 The US International Trade Commission Initiated “337 Survey” on Huawei and ZTE

In recent years, ZTE and Huawei have developed rapidly in electronic communication. They are not only leaders in China's high-tech industry, but also open up the large overseas markets. On July 24, 2012, American Technology Assets Co., Ltd., Phoenix Digital Solutions LLC, and Patriot Scientific applied to ITC to accuse the China exports and sales in the US domestic market. Wireless consumer electronic devices and their components infringe Unite States' patents (US Patent No. 5809336); On August 24, 2012, the US ITC officially opened a case investigation, the investigation file number is 337-TA-853, of which China Huawei Technologies Limited The company and ZTE Corporation were involved in the case of mandatory respondents [5]. After more than a year of difficult litigation, in the preliminary decision of the 337 survey (337-TA-853) involving some wireless consumer electronic devices released by the US ITC on September [6].

It was claimed that the import of wireless electronic devices from the Huawei and its subsidiaries, as well as ZTE in the domestic market does not infringe the claims of Nos. 1, 6, 7, 9-11 and 13-16 of US Patent No. 5,809,336, and does not violate the provisions of Section 337 of the United States. For the products that ZTE and Huawei export to the United States and sell in the US market, no injunctions and exclusion orders will be issued. At the same time, it was ruled that the US domestic industry had illegal use of patents involving No. 5809336.

After receiving the “337 Survey” from the United States, China quickly responded. ZTE and Huawei quickly convened professionals in the fields of technology, law, business, and lawyers with experience in investigating, and they actively planned countermeasures and solutions. On the one hand, it collects relevant evidence and materials to make reasonable and sufficient defenses against the plaintiff's accusation such as the global invalidity of the patent in question, on the other hand, they became active for the accusation, and organized relevant forces to launch attacks against the prosecution. Huawei said that the company had initially considered the possibility of intellectual property infringement of the product itself and had sufficient awareness of intellectual property protection. The early patent application and the comprehensive, adequate preparation and scientific Advances in Economics, Business and Management Research, volume 68 393 operational plan in the response to the lawsuit laid a solid foundation for ZTE and Huawei to win the case.

As the leader in the domestic electronics field, Huawei and ZTE have not only encouraged the confidence of other domestic industries to settle the US “337 Survey”, but also greatly Encourage many entities to fight against patent operating companies.